At the ‘Iraq: Untapped Opportunities’ conference in London last week, the Deputy Prime Minister with responsibility for energy, Dr Hussain al-Shahristani (pictured), said Iraq needed $200 billion (240 trillion Iraqi dinars) of investment in the energy sector over the next six years.

This investment would be broken down as follows:

• $100bn to develop upstream oil and gas fields;
• $40bn to develop the gas industry;
• $30bn to increase refinery capacity;
• $30bn to expand export facilities.

With regard to refineries, Shahristani said the refineries law provided investors with a 5% discount to the market price for crude oil, and in some cases all output would be bought by the Ministry of Oil.

Shares in Gulfsands Petroleum (LSE: GPX) closed the day up 6% on the London stock exchange following notification of more stake-building by Waterford Finance & Investment Limited.

Following recent incremental increases, Waterford’s latest purchase of shares brings their holding to 14%. Shares in the company have risen by 50% over the past three months, and now stand at 212.25p.

Waterford is an investment vehicle controlled by Russian investor Michael Kroupeev.

Another Russian concern, Soyuzneftegas Capital Limited, reports a 3.39% holding. The Telegraph reports that Yuri Shafranik, the former Russian energy minister, is chairman of Soyuzneftegas and also on the board of Waterford.

The President of Iraqi Kurdistan said on Wednesday that the region will go ahead with its exploration deal with U.S. oil major Exxon Mobil despite objections from Baghdad.

According to Reuters, Masoud Barzani (pictured) said Iraqi Prime Minister Nuri al-Maliki was told of the deal prior to its signing and had no objection, and called Baghdad’s opposition unconstitutional.

“The contract is not unconstitutional. Yes, we have signed with Exxon Mobil according to the constitution … the objection that we heard from some officials is what is unconstitutional,” he told the news agency in an interview.

“We are committed to the deal and we will execute it without caring about what some officials in Baghdad say, which is against the constitution.”

Exxon has not commented publicly on the agreement and Iraqi oil officials say the company has not responded to their requests for an explanation.

Despite the silence from Exxon, the U.S. State Department commented on the deal, saying it hoped Iraq and Exxon could resolve the dispute in a way that would not undercut the future development of Iraqi oil resources.

Barzani said the Exxon deal would benefit all of Iraq, not just the Kurdish region. He said he was surprised at Baghdad’s recent warning against the deal.

“It is strange really, and has no meaning. For us, it doesn’t mean anything. At the first step, I sent a message to the prime minister and informed him of all the details. The answer I got back was that there was no objection… Before the signing, yes.”

“The oil policy in Iraq is a failed policy, I say it clearly. Ask the Iraqi people where are the oil refineries? … How many hours of electricity are available for the Iraqi citizen in the center and south? And Iraq lives on a sea of oil,” he said.

“If it is not a failed policy, then what is the reason?” he asked.

 (Source: Reuters)

The EIC is organising an oil and gas trade mission to Basra in Iraq.

Missioners will have the opportunity to attend organised group meetings with key local players, as well as incorporating a briefing meeting presented by qualified speakers with in-market experience and the opportunity to meet with local companies.

Why Iraq?

As Iraq works to rebuild its economy and infrastructure after years of war and internal strife, the engagement of UK businesses will be an important factor in the success of those efforts. During the past several years, in the face of many political challenges, Iraq‘s economy has made impressive strides.

Iraq‘s gross domestic product, which was $57 billion in 2007, has grown to more than $80 billion in 2011. In its 2010–2014 national development plan, the government has budgeted more than $186 billion for some 2,700 projects in different sectors.

Iraq holds one of the principal hydrocarbon reserves in the world. With proven reserves estimated at 143 billion barrels, the country‘s undiscovered oil reserve is considered to have the second largest reserve in the world — possibly 300 billion barrels. Iraq also has reserves of gas of 3.2 trillion cubic metres, and is also rich in other minerals, including sulphur, phosphate and iron.

There are also many opportunities in the country‘s power sector, as the government has targeted billions of dollars to restore and meet Iraq‘s increasing need for power. Areas of opportunity include power plants, transmission and distribution, and renewable energy.

As Iraq moves forward with its new government, there are tremendous opportunities for UK companies to develop business.

There is priority booking for EIC members until 9th December. Please click here for full details and booking form.

The United States of America and the Republic of Iraq are committed to forging a strong partnership based on mutual interests that will continue to grow for years to come. Our two nations are entering a new phase in our relationship. We have a historic opportunity to strengthen our ties beyond security and build a multi-faceted relationship through trade, education, culture, law enforcement, environment, energy, and other important areas.

Three years ago, our nations signed the Strategic Framework Agreement (SFA), affirming both sides’ desire to establish long-term bonds of cooperation and friendship. The SFA is a lasting agreement, and one that serves as the foundation on which we are building a durable and mutually beneficial relationship. Today, we gather again in Baghdad to reaffirm our commitment to this important partnership and to the principles of cooperation, sovereignty, and mutual respect articulated in the SFA.

Vice President Joe Biden and Prime Minister Nuri al-Maliki convened the SFA’s Higher Coordinating Committee on November 30. Together, they affirmed the significant accomplishments under the SFA thus far and charted a course for further joint efforts.

Cultural and Education Cooperation

The Republic of Iraq seeks the cooperation of the United States in its efforts to build a stronger higher education system, expanding English language programs, and preserving Iraq’s rich cultural heritage, especially through assistance in conserving archeological sites such as the Babylon historical site, which the United States has helped preserve, and through support to the Iraqi Institute for Conservation of Antiquities and Heritage.

Turkey said it could use Iraq as an alternative trade route, cutting out Syria entirely as Damascus faces broad economic sanctions over its deadly crackdown on its 8-month-old uprising.

Syria has been a main transit route for Middle East trade, which Damascus hopes will help cushion the effects of tough new sanctions from the Arab League and Turkey, according to Associated Press reports.

The Arab sanctions were expected to bite far more than existing sanctions from the U.S. and the European Union, which had far more limited trade with Damascus.

Syrian Foreign Minister Walid al-Moallem said the Arab sanctions amounted to “economic warfare” and warned Damascus could use its strategic location to inflict economic damage of its own.

Turkey’s transport minister said there are alternatives to Syria, although he gave no specifics about when such a move might be taken.

“We are planning to conduct transit transport through Iraq, by opening new (border) gates, if the situation with Syria worsens,” Binali Yildirim told the state-run Anadolu Agency on Tuesday. He said Turkey would increase the number of border crossings with Iraq in such an event.

 (Source: Associated Press, Reuters)

(Picture: Iraq-Turkey Border)

Russia’s Gazprom Neft expects to start commercial production at Iraq’s Badra (Badrah) gas field in August 2013, according to Reuters.

Initial production is expected to be 15,000 barrels per day.

The company said it commenced drilling the first appraisal well on Thursday.

“The results of the initial appraisal wells will allow us to better understand the geology of the location, produce a definitive operating plan and move to commercial production of at least 15,000 barrels of oil per day in August 2013,” Vadim Yakovlev, Gazprom Neft’s first deputy head, said in a statement.

In January, Iraq signed a deal with Gazprom Neft, Turkey’s TPAO, Korea’s Kogas and Malaysia’s Petronas to develop Badra oilfield, which has estimated reserves of 100 million barrels of oil. The field is near Iraq’s border with Iran.

(Source: Reuters)

Najaf’s government has allocated 15 billion IQD ($13 million USD) to develop Najaf International Airport, according to AKnews.

The governor of Najaf, Adnan al-Zarafi told AKnews that the development plans will include updating equipment, expanding the apron and improving mechanisms for dealing with more traffic.

A new committee has been formed by the Council to study a 700-page proposal made by a foreign company.

The General Authority for Antiquities warned against expansion of some facilities at the expense of sites of ancient city of Najaf, especially Hira city.

The head of the authority, Qais Hussein Rashid said:

“The official parties and educated people in Najaf will not allow the expansion of the airport at the expense of the archaeological sites. As for the sites that are located near residential neighborhoods, we will find financial allocations needed to surround them with a fence to be protected.“

(Source: AKnews)